On September 30, 2009, EPA issued two new proposals on the road to regulating greenhouse gases (“GHGs”) under the federal Clean Air Act (“CAA”).  Coming on the heels of the release of the Boxer-Kerry draft climate change legislation, both proposals are fraught with legal and policy uncertainty and may further complicate an already complicated regulatory environment. 

This past Monday, the United States Court of Appeals for the Second Circuit finally released its decision in Connecticut v. AEP, a bellwether case involving whether carbon dioxide emissions from coal-fired power plants constitute a “public nuisance” subjecting emitters to common law tort liability. 

On September 22, 2009, the U.S. Environmental Protection Agency (“EPA”) issued final regulations imposing mandatory greenhouse gas (“GHG”) reporting obligations. 

In a court filing on September 16th, the Justice Department announced that the EPA will reconsider controversial Bush-era National Ambient Air Quality Standards (“NAAQS”) for ozone, sometimes referred to as smog.  EPA plans to act on a very fast schedule, with a proposed new ozone standard by December 21 and a final rule by August 31, 2010. 

In a joint press conference on September 15, the U.S. Environmental Protection Agency (“EPA”) and U.S. Department of Transportation (“DOT”) released details of a new national suite of automobile standards that would mandate increased corporate average fuel economy (“CAFE”) standards and carbon dioxide (CO2) emissions limits.

Reversing a 2008 decision by the Bush Administration, the new Obama Environmental Protection Agency (“EPA”), lead by EPA Administrator Lisa Jackson, has now approved California’s request for the authority to regulate greenhouse gas emissions from new automobiles. The decision allows California to implement standards it adopted in 2005 that are more stringent than current federal requirements.